Which of the following is an advantage of a dual-rate method?

	a.	It is the most widely used method in practice
	b.	It is less costly to implement.
	c.	It avoids the expensive analysis for categorizing costs as either fixed or variable.
	d.	It allocates fixed cost as per the budgeted usage that helps in short and long-run planning.

1. The Charmatz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply to the coming budget year:

   Budgeted costs of operating the copying facility

   for 300,000 to 500,000 copies:

   Fixed costs per year $61,000

   Variable costs 6 cents (0.06) per copy

   Budgeted long-run usage in copies per year:

   Marketing Department 100,000 copies

   Operations Department 400,000 copies

   Budgeted amounts are used to calculate the allocation rates.

   Actual usage for the year by the Marketing Department was 80,000 copies and by the Operations Department was 320,000 copies. If a single-rate cost-allocation method is used, what amount of copying facility costs will be budgeted for the Marketing Department? (Round any intermediary calculations to the nearest cent.)

   	a.	$18,200
   	b.	$6000
   	c.	$12,200
   	d.	$21,250

1. The Charmatz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply to the coming budget year:

   Budgeted costs of operating the copying facility

   for 300,000 to 500,000 copies:

   Fixed costs per year $69,000

   Variable costs 3 cents (0.03) per copy

   Budgeted long-run usage in copies per year:

   Marketing Department 100,000 copies

   Operations Department 360,000 copies

   Budgeted amounts are used to calculate the allocation rates.

   Actual usage for the year by the Marketing Department was 70,000 copies and by the Operations Department was 330,000 copies. If a single-rate cost-allocation method is used, what amount of copying facility costs will be allocated to the Marketing Department? Assume actual usage is used to allocate copying costs. (Do not round interim calculations and round the final calculation to the nearest dollar.)

   	a.	$20,250
   	b.	$18,000
   	c.	$12,600
   	d.	$2100

1. The Speedjet Aircraft Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Small Plane Department. The following data apply to the coming budget year:

   Budgeted costs of operating the materials laboratory

   for 100,000 to 200,000 technician hours per year:

   Fixed costs per year $7,400,000

   Variable costs $75 per technician hour

   Budgeted long-run usage in hours per year:

   Large Plane Department 80,000 technician hours

   Small Plane Department 120,000 technician hours

   Budgeted amounts are used to calculate the allocation rates.

   Actual usage for the year by the Large Plane Department was 60,000 technician hours and by the Small Plane Department was 80,000 technician hours. If a single-rate cost-allocation method is used, what amount of materials laboratory costs will be allocated to the Large Plane Department? Assume actual usage is used to allocate laboratory costs.

   	a.	$10,228,571.4
   	b.	$8,960,000
   	c.	$7,671,429
   	d.	$6,720,000